Accounts receivable management should be looked at like a strategy and a process, not just an accounting function or as the result of doing business. Like any other process or strategy, there are a number of steps that need to be taken for the best result. Be methodical in your accounts receivable management and go through the following 6 steps to ensure timely collection, healthy cash flow, and positive customer relationships. Continue reading
Accounts receivable management is no easy task and pulling together an effective strategy means following the seven C’s of credit collections:
- Customer service
Below is a deeper discussion of each of these factors, why they are important, and how you can implement them to make you’re accounts receivable more effective than ever before. You may find that some of these factors overlap but that it exactly what you want in an A/R strategy- a cohesive plan that works to help you get paid faster and provide customers with a positive experience in the process. Continue reading
Even for accounts receivable management professionals, picking up the phone and calling someone to ask about money can be uncomfortable, especially if you are not properly prepared. Beyond feeling awkward, if you are not prepared your conversation can be a waste of time, detrimental to the relationship, and potentially harmful to the entire accounts receivable management process.
Here are a few ways you can prepare yourself for your next round of accounts receivable management calls to help you remain in control, keep your customers relationships positive, and make your credit collection calls more effective and successful than ever. Continue reading
Do you have a written credit policy to help you with Accounts Receivable Management? Many companies don’t. Some companies do not have a written policy because they feel it will be more trouble than it is worth in terms of keeping it up to date and feel that the policy will quickly be forgotten and not used- so why bother?
Yes, there is some time that needs to be spent with the document to ensure it is up to date and accurate and you need to make sure your credit professionals are utilizing the document. It may seem like a hassle at first but that is time and energy well spent when you consider the advantages of having a formal written policy in place. But write with care, there are some very important guidelines for writing an effective credit policy to ensure more effective Accounts Receivable Management. Continue reading